Grand Rapids Reporter

City of Grand Rapids issued the following announcement on Sept 15.

The City Commission yesterday formalized part of its work to address racial and ethnic disparities in housing in Grand Rapids and preserve and increase affordable housing supply by establishing the Grand Rapids Affordable Housing Fund through adoption of a City Commission Policy that provides the framework for action.

The City Commission also approved an agreement between the City and Grand Rapids Community Foundation (GRCF) that establishes the Grand Rapids Affordable Housing Fund as one of the foundation’s non-endowed designated funds.

Established through the work of the City’s housing practice leader, Housing Next, the Affordable Housing Fund will help assist low- and moderate-income residents, preserve existing affordable housing, offer gap-financing for new affordable and mixed-income housing development and make bridge loans for acquisition and pre-development costs with nonprofit developers.

"Establishment of the housing fund is a major accomplishment that has been a priority for this Commission,” Mayor Rosalynn Bliss said. “This effort is essential as we work to  ensure that Grand Rapids remains a desirable and equitable place to live for all. I am grateful for all of our partners, residents, commissioners and city employees who worked hard over the years to make this fund a reality.”

At Tuesday morning’s Committee of the Whole, housing Next Executive Director Ryan Kilpatrick, the City’s Housing Practice Leader, outlined the Commission policy for operation of the Grand Rapids Affordable Housing Fund. He detailed its purpose, board makeup and appointment process, duties, decision-making process, uses of funds for investment in housing and process for the initial deposits and future deposits to the fund.

The City’s fiscal year 2021 budget included an initial investment in the fund of $875,000, which will be transferred to the Affordable Housing Fund and these funds remain available for this purpose. This represents the amount authorized in the City’s fiscal plan, less the $250,000 already invested in the La Lucha Fund to support the housing needs of undocumented residents of the city during the pandemic.

The Commission also established a fiduciary through the GRCF for stewardship of initial and future dollars dedicated to this purpose. The foundation will manage the Grand Rapids Affordable Housing Fund investments as a non-endowed designated fund, with the Housing Fund Board making all capital spending and distribution decisions.

“The foundation will be the steward of the monies invested to grow the fund, allowing the City to benefit from highly experienced staff at GRCF to support the long-term expansion of the fund,” Kilpatrick said. “This partnership creates an opportunity to accept financial contributions from outside philanthropic, corporate and faith-based organizations from across the community.”

The Affordable Housing Fund board will consist of 11 members of the community with experience related to housing, finance, residential development, health and well-being, lived experience, social work, philanthropy and impact investing. Representative of the racial/ethnic makeup of the community. Members will consist of:

• Three members nominated by ward commissioners – one from each ward
• One member nominated by the mayor
• The city manager or their designee
• The executive director of the Grand Rapids Housing Commission
• Five members nominated from community through the Committee on Appointments

The Affordable Housing Fund board established by the Commission will make all spending and distribution decisions in the form of recommendations to the City Commission designed to make housing more accessible to residents of the city. It will evaluate and determine property acquisition, preservation and pre-development loan funds for qualified and experienced nonprofit housing partners. It also is also empowered to support gap financing to support mixed-income, nonprofit and for-profit development projects that include affordable housing, as well as income-qualified homeowner assistance grants/loans to support necessary repairs, reduced energy costs and climate resilience and additions for accessory dwelling units. Gap financing will also be offered to development projects that receive money from state or federal funding or equity investment. The Affordable Housing Fund board could also consider potential direct investment of a projected $5 million in ARPA funds as envisioned in the FY2022 Fiscal Plan as may be allowed under Federal rules to stimulate development or preservation of affordable housing now.

The concept of establishing a Housing Fund first emerged from work on Great Housing Strategies in 2015 and carried through to the recommendations of Housing Now! In late 2018 and early 2019, the City halted plans to establish a fund due to a variety of circumstances – primary among them was the closure of the Kent County Land Bank Authority and the need to align housing strategy with the City’s strategic plan that was under development. In 2019, the City contracted with Housing Next to help establish a Housing Fund that aligns with the City’s adopted strategic plan. The plan’s economic prosperity and affordability priority includes an objective that “supports housing development and services that help keep people in their homes.”

To learn more about the Grand Rapids Affordable Housing Fund, CLICK HERE.

Original source can be found here.

Source: City of Grand Rapids